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The Central Board of Indirect Taxes & Customs has prescribed the manner of processing and sanction of IGST refunds, withheld in terms of clause (c) of sub-rule (4) of rule 96, transmitted to the jurisdictional GST authorities under sub-rule (5A) of rule 96 of the Central Goods and Service Tax Rules, 2017. The instruction dated 28 November 2022 can be accessed.
Pursuant to the recommendations of the GST Council in its 47th meeting held on 28-29 June, CBIC issued a series of circulars in response to requests for clarifications from industry on various issues:
The above Circulars issued on August 03, 2022, can be accessed here.
CBIC has notified that e-invoicing under GST will now be applicable to taxpayers having aggregate turnover exceeding INR10 crore in any preceding financial year from 2017-18 onwards. The Notification No.17/2022 – Central Tax dated August 01, 2022 can be accessed here.
In response to a question posed in Rajya Sabha, the Minister of State for Finance Mr. Pankaj Chaudhary clarified that the ruling of the Supreme Court of India in Union of India & Anr. v M/s Mohit Minerals Pvt. Ltd. (which held that recommendations of the GST Council are non-binding on States) does not alter the constitutional mechanism of the GST Council. He stated that the State and Central Acts provide that rates, exemptions and rules etc. would be prescribed only on the recommendations of the council, and therefore are binding on the States and the Centre.
The documented response against Unstarred Question No. 203 on July 19, 2022 can be accessed here.
CBIC issued a series of notifications giving effect to the GST rate related decisions taken in the 47th Meeting of the GST council held last month. The relevant notifications No. 03/2022 to 11/2022-Central Tax (Rate) dated July 13, 2022 can be accessed here. A summary of these rate changes, effective July 18, 2022, is also available on the Tax Forum website.
Pursuant to the recommendations and decisions taken in the 47th GST Council meeting, the CBIC has given effect to the same via issue of necessary circulars and notifications (the relevant circulars can be accessed here and the Notifications No. 09/2022 to 14/2022 can be accessed here. A summary of these circulars and notifications is also available on the Tax Forum website.
In view of the recommendations of the 47th GST Council Meeting, a GoM was constituted to address necessary changes to provisions governing GST Appellate Tribunals. The GoM consists of Ministers from Haryana, Uttar Pradesh, Goa, Rajasthan, Andhra Pradesh, and Odisha. The Office Memorandum dated July 06, 2022 can be accessed here.
Pursuant to the recommendations made in the 47th Meeting of the GST Council held last month, the GST Policy Wing of Central Board of Indirect Taxes & Customs has released a Concept Paper detailing the changes, including a draft Form GSTR-3B and explanatory instructions thereto, seeking comments and suggestions from the industry to finalise the same. The proposed changes aim to incorporate long-standing industry requests in view of challenges faced in undertaking compliances. A copy of the Concept Paper can be accessed here.
CBIC issued instructions in relation to the procedures for sanction, post-audit and review of GST refund claims. A detailed speaking order is also now required to be uploaded along with the refund sanction order. Further, all refund orders shall also be reviewed for legality and propriety. The instructions also specify additional details to be included in the refund order, and that all orders are to be immediately transmitted online to the review module after issuance. The complete list of instructions can be accessed.
Government notifies ‘nil’ rate of interest for certain e-Commerce Operators who could not file the statement in FORM GSTR-8 within due date owing to technical glitch on the portal but had deposited the tax collected at source in the ECL for the prescribed period u/s 52(1). Please access the notification here.
Central Board of Indirect taxes and Customs (CBIC) has waived off the late fee payable for delay in furnishing FORM GSTR-4 (return to be filed by composition scheme taxpayers) for FY 2021- 22 from May 1, 2022 till June 30, 2022. Please access the notification here.
The Central Board of Indirect Taxes and Customs has issued a standard operating procedure (SoP) for the scrutiny of GST returns for the financial year 2017-18 and 2018-19. Till the time a scrutiny module for online scrutiny of returns is made available on the CBIC-GST application, as an interim measure, the SOPs are being issued by the Board in order to ensure uniformity in selection/ identification of returns for scrutiny, methodology of scrutiny of such returns and other related procedures for FY 2017-18 and 2018-19.
CBIC has notified reduction in aggregate turnover in a financial year specified for e-invoicing from Rs. 50cr to Rs. 20cr. Please access the notification here.
GSTN issues Advisory for auto-population of e-invoice details into GSTR-1, envisages that generation of e-invoice is mandatory for certain class of taxpayers, as notified by Government and these taxpayers are required to prepare and issue their e-invoices by reporting their invoice data in prescribed format (e-invoice schema in FORM GST INV-01) and reporting the same on Invoice Registration Portal (IRP). Click here to read / download the GSTN Advisory.
In a recent instruction CBIC has issued guidelines for initiating recovery proceedings in case of non-payment or short -payment of self-assessed tax. Section 75(12) of Central Goods and Services Tax Act, 2017 (CGST Act) provides for recovery of unpaid self-assessed tax. Vide Finance Act, 2021, an Explanation has been inserted, effective from 1 January 2022, clarifying that “self-assessed tax” includes tax payable in respect of outward supplies as furnished in GSTR-1, but not paid in GSTR-3B. CBIC issued guidelines to address the doubts raised by trade and field formations regarding the modalities of initiation of recovery proceedings in such cases. Please refer to the instructions here.
Central Board of Indirect taxes & Customs has issued clarification regarding applicability of GST on service supplied by restaurants through e-commerce operators (ECOs). Forum had been working very closely with the GST policy wing requesting clarification regarding modalities of compliance to GST laws and we are glad that many of our recommendations are considered. Please refer to the circular here.
The 46th GST Council was held on December 31st, 2021. The council has recommended to defer the decision to enhance the rate on textiles from 5% to 12% as recommended in the 45th Meeting. Existing rates in textile sector shall continue beyond January 01, 2022. Please refer to the press release.
In a series of notifications, the Central Board of Indirect Taxes and Customs has amended the Central Goods and Services Tax Rules, 2017 (CGST Rules) brining in the following key changes.
The Central Board of Indirect Taxes and Customs has issued the clarification on certain GST refund related issues further to the receipt of various representations from taxpayers and other stakeholders seeking clarification in respect of certain issues relating to refund.
CBIC has issued clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices issued to recipient located outside India where payment is received through any RBI approved mode and place of supply is in India.
The CBIC in line with the recommendation of GST Council in its 45th meeting held on Friday i.e. 17 September 2021 has issued a notifications dated 30 September 2021 relating to change of GST rates on goods and services. The are effective from 1st October 2021.
GSTN issues advisory in relation to input tax credit (ITC) in respect of records (invoices and debit notes) for supply of goods or services (or both) for Financial Year 2020-21 which have been submitted after the due date of furnishing the return for the month of September 2021.
Further to the 45th Goods and Services Tax Council meeting CBIC has formed two Groups of Ministers (GoMs), the first to look into rate rationalisation and the second to examine the issues of e-way bills, FASTags, technology and compliances. Both the GoMs have been given two months’ time to submit their reports. Please refer here and here .
GSTN has issued an advisory addressing instances of goods and services where Trade description differ from the Technical descriptions otherwise provided in the HSN descriptions of the Customs Tariff Act, 1975. Please access the advisory here.
The facility of blocking E way bill generation had been temporarily suspended due to pandemic. The government has now decided to resume the blocking of EWB generation facility on the EWB portal, for all the taxpayers in terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, from 15th August onwards. Thus, after 15th August 2021, the System will check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08, and restrict the generation of EWB in case of. For details of blocking and unblocking EWB.
The Central Board of Indirect Taxes and Customs (CBIC) has notified provision for self-certification instead of audit report from August 1. The changes have taken place following GST Council decision to allow self-certification of reconciliation statement in GSTR-9C instead of Chartered Accountant certificate, CBIC has notified the amendment in CGST Act. Please refer to the notification here.
CBIC has launched an online filing of AEO T2 and AEO T3 web- applications, Version 2.0 for real-time monitoring and digital certification; The updated version of the existing web application will be accessible for both applicants and customs officials from July 07, 2021. Please refer to the circular here.
Central board of Indirect Taxes and Customs has issued clarification w.r.t. applicability of Dynamic Quick Response code on B2C. You would recall our consistent efforts to request CBIC for these FAQs are we are glad these have been released now. Please refer to the clarifications here. Forum will soon be filing a request for extension on the date of implementation and will also share a detailed feedback on clarifications.
The 44th meeting of Goods and Services Tax (GST) Council was held on 12 June 2021. The Council has decided to reduce GST rates on the following items being used in Covid-19 relief and management. The said reduction shall remain in force till 30 September 2021. Please access the relevant notification here.
| Particulars | Earlier rate | Revised rate |
|---|---|---|
| Tocilizumab and Amphotericin B | 5% | Nil |
| Anti-Coagulants like Heparin and Remdesivir | 12% | 5% |
| Any other drug recommended by Ministry of Health and Family Welfare and Dept. of Pharma for Covid treatment | Applicable rate | 5% |
| Oxygen, Oxygen generation equipment and related medical devices | 12% | 5% |
| Testing Kits and Machines | 12% | 5% |
| Pulse Oximeters, incl personal imports thereof | 12% | 5% |
| Hand Sanitizer, Temperature check equipment, Gas/Electric/other furnaces for crematorium, including their installation, etc. | 18% | 5% |
| Ambulances | 28% | 12% |
43rd GST Council meeting under chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman which took place on May 28th 2021 after a gap of nearly 7 months, announces measures for reduction of compliance burden on small and medium taxpayers, extends due dates for various compliances and proposes changes in GST rates on goods and services;
The key decisions are as follows:
Please access the press release here.
Central Board of Indirect Taxes and Customs has amending rules pertaining to refund, registration and e-way bill under GST. Please refer to the rules here.
The Central Board of Direct tax has extended the timelines for various compliances under the Income-tax law in order to provide relief to tax payers in view of the current pandemic situation. Please access the circular here .
CBIC releases Frequently Asked Questions (FAQs) on IGST exemption given to import of specified COVID-19 relief material vide Adhoc Exemption Order. It clarifies that, any ‘relief agency’ authorised by a State can make free distribution of goods so imported anywhere in India however, in case any corporate buys it and even gives it for free, such exemption will not be available. Forum is working with CBIC to request for expanding the scope of this exemption and to also ensure that its available when imported for a cost by companies/ NGOs. Please refer to the FAQs here.
The Central Board of Indirect Taxes and Customs has extended the basic customs duty and integrated goods and service tax exemptions for export oriented units, by a year till March 31, 2022. The Board also made it mandatory for a GST taxpayer having turnover of more than Rs 5 crore in the preceding financial year,to furnish 6 digits HSN Code on invoices issued for supplies.
On the basis of feedback received from our members, USISPF had last week requested the GOI to defer implementation of Dynamic Quick Response (QR) Code on B2C invoices and compliance of Notification No. 14/2020- C.T. dated March 21, 2020. We are glad that our recommendations are accepted and CBIC has notified a waiver of penalty for non-compliance of capturing QR code till June 30.
Please access the notification here.
Further to industry request, Central Board of Indirect Taxes & Customs has issued ‘Clarification on various refund related issues’. The summary of the clarifications issued has been provided in the below:
Please refer to the circular here ..
The Indian Finance Minister presented the Union Budget 2021 on February 1 2021. Key tax announcements made in the Budget which include some clarifications with respect to the equalization levy or the digital service tax and various other procedural changes. Most of the tax proposals will be applicable from April 1, 2021 unless otherwise specified. Please access the updates (here) and (here). On the basis of feedback received from our members, USISPF shared detailed submission as a post budget feedback to the Government on tax amendments.
The Central Board of Indirect Taxes and Customs has notified requirements for issuance of e-invoice w.e.f. April 01, 2021, making it applicable to registered persons whose turnover exceeds Rs. 50 crore in respect of supply or exports of goods or services or both. Please refer to the notification here
The Central Board of Indirect taxes & customs has notified that the requirement of Aadhar Authentication for GST registration shall not apply to 6 categories of person viz. (a) not a citizen of: India, (b) a Department or establishment of the Central Government or State Government (c ) a local authority (d ) a statutory body (e ) a Public Sector Undertaking and (f ) any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries; Supersedes Notification No. 17/2020- Central Tax dated March 23, 2020. Please read the notification here.
Last week forum had requested CBIC to extend the due date for filing GSTR-9 and GSTR-9C on grounds of business situations due to COVID 19. Further to the industry request, CBIC has now extended the due date for filing filing GSTR-9 and GSTR-9C for the Financial Year 2019-2020 to March 31, 2021. Please refer to the notification here.
Owing to the impact of COVID-19 which has resulted in business disruption and ability of the workforce to perform their tasks as well as difficulty for professionals in accessing data and interacting with the relevant stakeholders, USISPF has on behalf of its members requested CBIC for further relaxations on the compliance deadlines approaching by February.
CBIC has issued FAQs regarding services by way of Transport and Logistics, which clarifies various issues under GST and explains that a single truck owner-operator plying truck mostly between States, carrying the goods booked for truck by an agent or renting it to a major player, who provides GTA service is not required to take registration. Please refer to the FAQs here
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CBIC has issued FAQs regarding services by way of Transport and Logistics, which clarifies various issues under GST and explains that a single truck owner-operator plying truck mostly between States, carrying the goods booked for truck by an agent or renting it to a major player, who provides GTA service is not required to take registration. Please refer to the FAQs here
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CBIC has further extended an interim solution to verify IGST payment on account of mismatch between GSTR-1 and GSTR-3B considering the fact that records were not been transmitted to ICEGATE due to such mismatch. Refer to the circular here
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CBIC has notified Standard Operating Procedure (SOP) for implementation of the provision of suspension of registrations under sub-rule (2A) of Rule 21A of the CGST Rules, 2017. Please refer to the circular here.
On December 30 2020, the Central Board of Direct Taxes has issued a press release addressing various concerns of taxpayers and stakeholders in relation to the compliances under the Income Tax Laws. Amongst others, the Press Release includes extension in due dates for filing tax returns, tax audit report, transfer pricing report etc. for tax year 2019-2020 for various taxpayers. Additionally, the sunset date for filing declaration under The Direct Tax Vivad Se Vishwas Act, 2020 (VSV) has been extended to 31 January 2021. On 31 December 2020 further notifications were released to formalize the various announcements made in the Press Release. Please access the press release here and notifications here.
On 25 December 2020 Goods and Services Tax Network (GSTN) released a facility of ‘communication between taxpayers’ on the GST portal. This facility enables the taxpayer, both recipient and supplier to communicate with each other by sending a notification regarding missing documents, any shortcomings in the documents or any other related issue. The facility is available to all registered persons, except those registered as person liable to deduct or collect tax at source and non-resident taxable person. The manner of using the facility and sending notification has been detailed in the GSTN communication. User manual and frequently asked questions (FAQs) have also been issued in this regard. Please access the facility here.
The government has notified several changes in the GST law and has also put into effect several amendments brought in vide the Finance Act, 2020. Key changes brought in Goods and Service Tax Rules, 2017 through Notification No. 94/2020-Central Tax dated 22 December 2020 are with regards to the following:
Please refer to the notification here .
CBIC has issued clarification on waiver from recording of UIN on the invoices issued by the retailers/suppliers, pertaining to the refund claims from April 2020 to March 2021. Please refer to the circular here.
The Central Goods and Services Tax Rules, 2017 provide time limits for the examination of anti-profiteering applications by the Standing committee, completion of investigation by the Director General of Anti-profiteering and passing of order by the National Anti-profiteering Authority. In a recent notification Central Board of Indirect Taxes and Customs (CBIC) has extended the time limit for completing anti-profiteering related actions by the Authority constituted under GST. As per the Notification, where the time limit for completion or compliance of any anti-profiteering related action by any Authority, falls during the period 20 March 2020 to 30 March 2021, the same shall be extended till 31 March 2021. Refer to the notification here.
For further details please reach us here
Facility to file annual return in Form GSTR-9 for FY 2019-20 is now available on GSTN portal. The Form is enabled for taxpayers whose table 8A computation has been completed.
The dynamic QR code in case of B2C supplies was proposed to be implemented from December 1, 2020. On the basis of feedback received from our members forum organised several consultations and submitted detailed concerns and ambiguities. The CBIC has now waived the amount of penalty leviable under section 125 of Central Goods and Services Tax Act, 2017, for not providing dynamic QR code on B2C invoices during the period December 2020 to March 2021. However, such waiver is subject to the condition that the taxpayer complies with the provisions of the Notification no. 14/2020-CT from 1 April 2021 onwards. We are glad that our recommendations are considered by the GOI.
The Central Board of Indirect Taxes & Customs and the Goods and service Tax network have released updated FAQs on GST E-invoicing bringing in important updates. Please refer to the FAQs here.
In a recent notification and circular issued by the Central Board of Indirect Taxes and Customs (CBIC) under the Goods and Services Tax (GST), the board has notified that with effect from 1 January 2021, e-invoicing will be applicable to taxpayers having aggregate turnover exceeding INR100 crores in the preceding financial years. The notification further provides that the amendment in section 39 of the Central Goods and Services Tax Act, 2017 (CGST Act) to enable quarterly filing of return by a certain class of taxpayers, has been notified w.e.f. 10 November 2020.
In a recent announcement, CBIC has amended the requirement for issuance of e-invoice w.e.f. January 1, 2021 making it applicable to registered persons whose turnover in any preceding financial year from 2017-18 onwards exceeds Rs. 100 crore in respect of supply of goods or services or both or exports. The board has also extended the time-limit for furnishing the details of outward supplies in FORM GSTR-1 for each of the tax periods w.e.f. January 1, 2021 till the 11th of month succeeding each tax-period. Refer to the relevant notifications.
In a recent Circular CBIC has clarified that the compliance with Rule 36(4) for the months of February 2020 to August 2020 should be done cumulatively and reported in September 2020 returns, ie, 110% of matched credit are to be availed and any excess to be reversed.
CBIC defers implementation of requirement of Dynamic QR code in B2C invoices to December 01, 2020. Given that the requirement to a Dynamic QR code USISPF had requested the GST council secretariate to allow industry some more time to get the systems ready for generating such a QR code. Unlike e-invoicing where the QR code is pre-generated by IRP and sent to a taxpayer, here the taxpayer would need to self-generate the QR code. With a limited time of a week for 01 October 2020, there was an urgent need to defer this requirement of incorporating B2C QR code. We are glad our recommendations are considered.
Owing the impact of COVID-19 which has resulted in business disruption and ability of work force to perform their tasks as well as difficulty for professionals in accessing data and interacting with the relevant stakeholders, USISPF had on behalf of its members requested CBIC for further relaxations on the compliance deadlines approaching by September 2020. We are glad our recommendations are considered.
In a recent instruction issued by Principal Commissioner, dated September 18, 2020, tax authorities have been advised that for the period July 01, 2017 to August 31, 2020 only interest needs to be recovered on the net cash tax liability (i.e. the portion of the tax that has been paid by debiting the electronic cash ledger or is payable through cash ledger. Further it has been clarified that wherever SCN have been issued on gross tax payable, the same may be kept in Call book till the retrospective amendment in section 50 of CGST Act is carried out.
Facility to view, file and download returns of period July 2017 has been restored on GSTN portal
Central Government further extended due date of furnishing FORM GSTR-4 (composition dealer) till August 31, 2020.
The 40th GST Council meeting was held on 12 June 2020 through video conferencing. Given the COVID 19 situation the Council discussed a number of issues such as reducing compliance costs of taxpayers, inverted duty structure in the textile industry, and the shortage of funds to pay compensation cess to the States.
Central Board of Indirect Taxes and Customs (CBIC) has extended the time limit for issuing refund order and validity of e-way bill under Goods and Services Tax (GST).
CBIC has further extended the facility of accepting undertaking in lieu of bond for the period till June 15, 2020 and date for submission of proper bond in lieu of which the undertaking is being temporarily accepted till June 30, 2020.
For further details please reach us here